Adampak, the manufacturer of high-performance labels, seals and other precision die-cut components, says net profit increased 15.5% y-o-y to US$2.3 million ($2.9 million) for the three months ended 30 September 2010 (3Q2010) with a better product mix and economies of scale.

Revenue increased 9.1% y-o-y to US$16.2 million driven by growth across all sectors. The group’s telecommunication sector was amongst the best performers, growing 46% to US$1.6 million. This was followed by a 20.5% growth in the non-electronics sector to US$1.7 million. Adampak’s Hard Disk Drive (HDD) sector, the largest revenue contributor, performed in line with the HDD industry and maintained its sales of US$8.4 million for 3Q2010.

In 3Q2010, the group generated US$1.3 million from operating activities. The group is in a net cash position with US$12.6 million in cash and cash equivalents at the end of the quarter.

Chua Cheng Song, Chief Executive Officer, says: “Looking ahead at 4Q2010, the operating environment is expected to be similar to that of 3Q2010. As such, we expect our group’s performance to be sustained for the fourth quarter.”